Global Human Capital Trends 2014: Engaging the 21st-century workforce

Global Human
Capital Trends 2014
Survey Findings
2014

The research
• One of the largest ever study of global human capital trends, readiness,
and issues
• 2500+ business and HR leaders in 90+ countries
• Covering the major industries and all of the world’s geographies

Key findings
Today’s workforce demands a whole new set of leadership, talent, recruiting, and
engagement strategies. HR organizations are struggling to keep up.
Leadership continues to be the
biggest challenge companies
face around the world
Technology, analytics,
and the “overwhelmed
employee” are acute focus
areas for HR
Skills gaps, rapid obsolescence
of skills, the need for next-generation
learning, and talent
mobility will differentiate companies
“The 21st Century
Workforce” is different – and
engagement and retention
are now top issues on the minds
of CEOs and CHROs
HR is falling behind in
structure, skills, analytics,
technology, and the development
of world-class recruiting and L&D
Copyright © 2014 Deloitte Development LLC. All rights reserved.
3
Note: The key findings are based on the outcomes of the Global HC trends report.

Lead and develop Attract and engage Transform and reinvent
Leaders at all levels: Close
the gap between hype and
readiness
Talent acquisition revisited:
Deploy new approaches for
the new battlefield
The reskilled HR team:
Transform HR
professionals into skilled
business consultants
Corporate learning
redefined: Prepare for a
revolution
Beyond retention: Build
passion and purpose
Talent analytics in practice:
Go from talking to
delivering on big data
Performance management
is broken: Replace “rank
and yank” with coaching
and development
From diversity to inclusion:
Move from compliance to
diversity as a business
strategy
Race to the cloud: Integrate
talent, HR, and business
technologies
The quest for workforce
capability: Create a global
skills supply chain
The overwhelmed
employee: Simplify the
work environment
The global and local HR
function: Balance scale and
agility
The trends
This year’s 12 critical human capital trends are organized into three areas
4

Lead and develop
6

Leaders at all levels
Close the gap between hype and readiness
• Number 1 talent issue facing organizations around the world
• 21st-century leadership is different with companies facing new leadership challenges
Current leadership programs falling short
The challenge is to
develop leadership
pipelines that are global,
broad, and deep,
reaching to every level
of the organization
7

Corporate learning redefined
Prepare for a revolution
• Biggest problem today is the uncoordinated structure of learning and development
• Corporate training requires content, context, and deep expertise
Slow adoption of leading-edge learning tools
Focus on continuous
learning and the move
from “push” training
to “pull” learning
8

Performance Corporate learning management redefined
is broken
Prepare Replace for “rank a Revolution
and yank” with coaching and development
• Ranking- and ratings-based performance management is damaging employee
engagement, alienating high performers, and costing managers valuable time
A strong majority rethinking performance management
70 percent of
respondents stated that
they are either
“currently evaluating” or
have recently “reviewed
and updated” their
performance
management systems
9

Performance Corporate learning management redefined
is broken
Prepare Replace for “rank a Revolution
and yank” with coaching and development
The quest for workforce capability
Create a global skills supply chain
• Corporations now compete globally for increasingly scarce technical and professional
skills
• Deep capabilities drive performance—and take years to build
The gap is wider in
major economies
75 percent of
respondents rate
workforce capability as
“urgent” or “important”,
however only 15 percent
believe they are ready to
address it
10

Attract and engage
11

Talent acquisition revisited
Deploy new approaches for the new battlefield
• A new battlefield has been shaped by new global talent networks and social media
• It is being defined by employment brands and changing views of careers
Most companies reviewing or changing sourcing and recruiting
60 percent of
respondents have
updated or are currently
revamping their talent
sourcing strategy,
another 27 percent are
considering changes
12

• Number 2 priority rated by executives around the world
• Millennials are 34 per cent of global workforce - some 70 per cent of Millennial want to
launch their own business as some point
Companies struggle to instill passion and purpose
Any workplace that lags
in inspiring passion and
purpose will suffer by
losing key employees—
and at an increasing rate
as the global economy
picks up momentum
Beyond retention
Build passion and purpose
13

From diversity to inclusion
Move from compliance to diversity as a business strategy
• Organizations promote diversity however they struggle to fully leverage the business
benefits of a diverse workforce
• Only one company in five (20 percent) believes it is fully “ready” to address this issue
Wider gaps observed
in major economies
The gap between the
urgency and companies’
readiness to address it
is particularly wide in
Japan, South Africa, and
China
14

• An explosion of information or “hyper-employment” and always-connected 24/7 work
environment is overwhelming employees
• This undermines productivity and contributes to low employee engagement
An underwhelming response to today’s overloaded employee
65 percent of executives
rated the trend as
“urgent” or “important”,
while 44 percent said
that they are “not ready”
to deal with it
The global overwhelmed and local employee
HR function
Balance scale and agility
Simplify the work environment
15

Transform and reinvent
16

• Businesses report that their HR teams are “not ready” or up to the job
• HR teams need to develop: HR and talent skills; Business, industry, and global skills;
and Management, leadership, and program implementation skills
65 per cent assess their capabilities as “Adequate” to “Under-performing”
Third most urgent and
important trend with 77
percent of respondents
ranking it as “urgent”
or “important”
The overwhelmed reskilled HR team
employee
Simplify the work environment
Transform HR professionals into skilled business consultants
17

Talent analytics in practice
Go from talking to delivering on big data
• HR is evolving into a data-driven function
• However, most companies are yet to convert these capabilities into action
Nearly half of the companies surveyed are moving forward
Companies that
successfully leverage
analytics will be
positioned to outperform
their peers in executing
their talent strategies
18

Race to the cloud
Integrate talent, HR, and business technologies
• Today’s integrated HR platforms are “systems of engagement”
• They enable improvements in productivity, capability development, collaboration, and
data-driven decision making
Limited investment in HR and talent systems
56 percent of the
respondents say their
companies are either not
considering updating or
have no definitive plans
to update their systems
19

• Today’s challenge is developing an integrated global HR operating model that allows
for customizable local implementation
• Companies in Brazil, Japan, and the United Kingdom are struggling to adapt
Wide gaps observed
across economies
81 percent of large
organizations report
that implementing an
HR global operating
model is “urgent” or
“important” today
The global and local HR function
Balance scale and agility
20

How to access the report
We’ve developed a set of tools to enable you to have conversations within your
organization and your leaders
22
Read the PDF Report and share
it within your organization
www.deloitte.com/hctrends2014
Use the Interactive Dashboard
www.deloitte.com/hcdashboard to filter
the trend data by:
• Organization size
• Industry
• Region
• Country
• Level in organization
Download the iPad App and
familiarize yourself with the trends
Follow us on twitter:
@DeloitteTalent and @Bersin
Subscribe to the HR Times blog:
www.hrtimesblog.com

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms,
each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of
Deloitte Touche Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally
connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients,
delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all
committed to becoming the standard of excellence.
This publication is for internal distribution and use only among personnel of Deloitte Touche Tohmatsu Limited, its member firms, and their related
entities (collectively, the “Deloitte Network“). None of the Deloitte Network shall be responsible for any loss whatsoever sustained by any person
who relies on this publication.
© 2014. For information, contact Deloitte Touche Tohmatsu Limited.

Global Human Capital Trends 2014: Engaging the 21st-century workforce

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Destacado

Destacado (20)

Similar a Global Human Capital Trends 2014: Engaging the 21st-century workforce

Similar a Global Human Capital Trends 2014: Engaging the 21st-century workforce (20)

Más de Deloitte United States

Más de Deloitte United States (20)

Último

Último (14)

Global Human Capital Trends 2014: Engaging the 21st-century workforce